Newzoo: Global Esports Economy Will Top $1 Billion for the First Time in 2019

We are proud to announce that today marks the release of our 2019 Global Esports Market Report, the fifth edition of the landmark report. It provides an in-depth look at the esports economy—globally and per region—as well as a realistic estimate of its future potential in terms of trends, viewers, franchises, and revenue streams. Based on our continuous and extensive analysis of the market, it is the only report you need to explore your esports opportunity and create the right strategy for your brand.

2019: A Momentous Year for Esports as the Market Surpasses $1 Billion

The year 2019 marks a major milestone for the global esports market, which will for the first time exceed the billion-dollar revenue mark. In fact, revenues will reach an impressive $1.1 billion in 2019, a year-on-year growth of +26.7%. Around 82% of the total market ($897.2 million), will come from endemic and non-endemic brand investments (media rights, advertising, and sponsorship). The highest-grossing individual esports revenue stream worldwide is sponsorship, generating $456.7 million in 2019. The fastest-growing esports revenue stream by far is media rights. The full report contains a deep dive on the global trends affecting sponsorship, media rights, advertising, and more.

“Esports’ impressive audience and viewership growth is a direct result of an engaging viewership experience untethered to traditional media,” says Newzoo CEO Peter Warman. “Plenty of leagues and tournaments now have huge audiences, so companies are positioning themselves to directly monetize these Esports Enthusiasts. While this began happening last year, the market is constantly expanding on its early learnings. The result: 2019 will be the first billion-dollar year for esports, a market that will continue to attract brands across all industries.”

Global Esports Viewers Will Total 453.8 Million This Year

The global esports audience will grow to 453.8 million worldwide in 2019, a year-on-year growth of +15.0%. This audience will consist of 201.2 million Esports Enthusiasts (+16.3% year-on-year growth) and 252.6 million Occasional Viewers (+14.0% year-on-year growth). As the esports market matures and the number of local events, leagues, and media rights deals increases, we anticipate the average revenue per fan to grow to $6.02 by 2022.

The Future and Revenue Potential of Esports

The esports market is on track for additional growth in the coming years as it continues to innovate and attract investment. Non-endemic brands in particular present a huge opportunity. While many brands have already entered or are currently planning their entrance, other brands have yet to make the first venture. Both digital broadcasters and TV media companies have already started to compete for esports content and the extent to which these deals will generate a direct return on investment will impact the pace of media rights growth. Other ongoing developments that have high revenue potential include increased esports franchising, new content formats and premium passes, the success of mobile gaming, team profitability, and the success of new focus on professionals and streamers as brands.

On its current trajectory, we estimate the esports market will reach $1.8 billion by 2022. If any of these factors accelerate, a more optimistic scenario places revenues at $3.2 billion.

China Overtakes Western Europe’s Revenues

China will generate revenues of $210.3 million in 2019, overtaking Western Europe as the second-largest region in terms of revenues. The country is notable for the growing popularity of mobile esports, including casual titles. Yet, the recent slowdown of game licenses in China will affect Chinese gamers’ exposure to new esports titles. Fewer new games are appearing in the market, especially when it comes to Battle Royale and mobile titles. Still, esports is becoming extremely important for China, where major cities such as Chongqing, Xi’an, and Hangzhou are competing to become the country’s new esports hub.

North America will once again be the largest esports market, boasting revenues of $409.1 million. It will show strong growth toward 2022, when it will reach $691.1 million. The largest share of North America’s 2019 esports revenues will come from sponsorship ($196.2 million). Meanwhile, Media rights will contribute most to this growth and will remain the fastest-growing and second-largest esports revenue stream in the region. The 23.9 million Esports Enthusiasts in North America will generate $17.13 per fan this year, higher than in any other region.

Newzoo’s Global Esports Market Report

You can find deeper insights for every region along with granular revenue and audience estimates in the full report. It also includes developments per region, demographic insights, top events and franchises, and the key trends shaping and disrupting the esports business. This annual report forms part of our Global Esports Market Report service which includes quarterly trend and forecast updates, access to the granular market data in our online dashboard, and expert analyst support.

These insights help companies to explore opportunities in esports, create the perfect strategy, and stay ahead of the latest trends. This is exactly why so many brands are subscribed to the report, including most global games, media, and hardware companies—as well as esports teams, organizers, and sponsors.

Learn more about the scope and methodology of the report and subscribe to the service here. You can also reach out to us at questions@newzoo.com.

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